adminMidlands Correspondent
MBERENGWA Rural District Council (RDC) has dragged NetOne to court after the network service provider defaulted on paying development levy and for operating without council permit after setting up five base stations in the local authority’s area of jurisdiction.In the matter, which will be heard before Zvishavane Court on 5 September, the local authority is demanding $20 000 in development levies from NetOne in terms of Section 96 (1)(a) and (e) of Rural District Councils Act.
Under Section 96, a rural district council may impose a land development levy upon all persons and businesses who become owners of land or one undertaking a specified business on rural land within the council area.
NetOne is said to have set up five base stations in the district without the permission and approval of Mberengwa RDC.
The network service provider went on to refuse to pay development levy arguing that they did not possess council permits therefore they were not eligible to pay development levy.
Any company or person operating or conducting business within a rural district council’s jurisdiction without the permit becomes illegitimate.
On Friday, Mberengwa RDC dragged NetOne to court after the network service provider refused to pay the $20 000.
The lawyer representing Mberengwa RDC, Mr Hebert Tafa said his client had decided to drag NetOne to court after efforts to get the money or to compel them to apply for a permit from the local authority were fruitless.
“NetOne came and set up base stations in Mberengwa without informing or seeking permission from the local authority.
My client then engaged the network service provider to apply for a council permit and subsequently pay development levies backdated to when they started operating.
However, NetOne refused to apply for permission and to pay the development levies amounting to $20 000 from the time they started operating in Mberengwa. The matter is before Zvishavane civil court,” he said.
NetOne, which is being represented by Mr Wellington Magaya of Coghlan, Welsh and Guest legal practitioners, argued that they could not pay development levies for two of its base stations because they were constructed inside private property.
The network service provider argued that it had erected its base station within the perimeters of Sandawana Mining Company premises and had an agreement with the company.
It also argued that the other had been erected on top of Mberengwa hotel which was again a private property.
NetOne, however, conceded that it had set up three other base stations within the council’s jurisdiction and agreed to pay levies.
Mr Magaya said he could not give further details pertaining to the matter citing professional reasons.
“I have to seek clearance from my client before I give a statement or comment on the issue in the media. The matter is still before the courts,” he said.
Online Reporter